Defence PSU stocks are increasing like a bullet train these days. These price surges are because of the effort by the government of India to develop and fortify the defence sector. Keeping the budget 2024 announcement in mind, a lot of buying has been seen in the defence PSU stocks.
Every defence stock has given impressive return wiithin a short period. One of them is Mazagon Dock Shipbuilders, which has delivered great returns. In fact, the PSU defence stock has more than doubled the investors money in just one month.
Mazagon Dock Shipbuilders is a shipbuilding defence company under the administrative control of the Ministry of Defense.
Mazagon Dock Share Price History
The shares of Mazagon Dock Limited rose 20% on Thursday and hit the upper circuit. However, the stock price closed marginally lower with a gain of 19.23% at Rs 5,585.50. Similarly it gained as much as 4.92% however closed lower at Rs 5,685.80 with a marginal gain of 1.80%. The stock price crossed Rs 5,800 level for the first time ever. With this it touched a new record high of Rs 5,860 and the market of the company reached Rs 1,14,676.90 crore. These surges are pre-budget rallies and recently the company was given Navratna status.
The IPO of Mazagon Dock Limited came at a price of Rs 135 to Rs 145. It got listed at Rs 216.25 on stock exchanges in October 2020.
Within just two years the share price has skyrocketed since April 2022. Before that it was trading nearly Rs 300 per share. Now it has crossed Rs 5,800 level.
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Money Got Doubled in Just One Month
The shares of Mazagon Dock have delivered an extraordinary return of 109% so far in the last month. It has gained more than 3,800% since its IPO debut.
Mazagon Dock shares have given a multibagger return of 154% in the last six months and 337% in the last one year.
Experts View
Vivek Karwa, CEO of Vriddhi Investment, said that buying defence PSU stocks at this price level is risky. These Stocks are rising amid the increased budget announcement.
According to him, valuations of defence PSU stocks are very high. Profit booking will soon be seen in these shares as investors expect a huge budget expenditure. So he advised, to buy these stocks during the dips or to stay away from these stocks now.
Defence stocks like BEL, HAL, Cochin Shipyard, Bharat Dynamics Ltd, Paras Defence, BEML, Premier Explosives etc have seen tremendous rise in recent years. That’s why these stocks have been attractive options for Investors. However, investors should keep an eye during the dips for safe investment.
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